The retail industry has experienced its fair share of ups and downs over the 2018-2023 period, with the pandemic, and its lockdowns and non-essential store closures, benefiting some channels but negatively impacting others. This was followed by a couple of years of unprecedentedly high inflation rates, favouring retailers like discounters as many Western European consumers had to watch their spending, concentrating on more essential goods and looking for the best value for money.
This report comes in PPT.
Discounters, already the leading grocery retailers channel in Germany, Western Europe's biggest retail market, overtook supermarkets to also assume this role in the Turkish market in 2023. Affordable prices, regular discounts and wide assortments, including their own private label lines, have helped Bim, A101 and Sok drive the discounters growth in the Turkish market.
Innovations such as click-and-collect services, seamless O2O customer journeys and personalised online recommendations based on in-store behaviour are becoming increasingly common in German retail. This convergence of digital and physical shopping experiences is enabling retailers to offer more cohesive and satisfying customer experiences, driving loyalty and sales across channels.
Retailers are likely to invest more in technology, such as digital screens, virtual reality and augmented reality, to improve the customer experience. There will likely also be a push to introduce entertainment and leisure into the retail concept, while pop-up stores also offer opportunities for players to introduce new products, new concepts and new experiences.
The rise of social commerce continues to be seen in the UK, boosted by Millennials and Gen Zers, with their generally high disposable incomes, given they spend greater time online on various digital devices. While Amazon Marketplace and Amazon continued to record positive sales growth in 2023, newcomer TikTok Shop Marketplace remained the most dynamic performer, once again recording triple-digit percentage growth.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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